HUM - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Humana Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] With that, I would now like to hand the conference over to Amy Smith, Vice President of Investor Relations. Thank you, and please go ahead.

Amy Smith

morning. good and you, Thank outlook In a Officer, discuss and Executive updated Humana's fourth Bruce Brian Kane, Broussard, financial our and and will XXXX President XXXX. Chief quarter Chief results moment, for Financial our Officer,

up Following a lines question-and-answer will analysts. for industry the these with we prepared remarks, open session

related to will remarks Legal session. investing the We Ventura, joining with listen both and prepared also Q&A media management's to Chief the Our Joe Brian Bruce and encourage public be Officer, for Q&A analysts. and the

Additionally, posted page materials call our for of replay be to reference recorded page Web This Relations will purposes. Humana's being today. we remarks. available site, supporting have Investor later Investor on That replay during Relations Brian's is the for prepared humana.com,

our in I participants advised Investors are call disruptions note, forward-looking employment, uncertainties latest our the and of impacted our ability the with relate our COVID-XX; financial the relief and risks advise our additional of in uncertainties. and economic, to markets could those operate XX-K, business. four, Certain statement. COVID-XX Actual actions earnings to others, in the begin business in number of negative Securities materially. pandemic, the cautionary and by spread and matters healthcare impacts connection we restrictions; discussed that relax are this call the our federal, the our results and which particular, risks in and risks Form of one, creates to provider COVID-XX spread other community us response benefits be related risk to involve Commission, and read a with taken expand taken including for and quarter statements to potential release state, forward-looking mitigate filings the of as Exchange effectively; our to among two, XXXX press statements they and all Before could for provide discussion, detailed in in these our forward-looking us conference governments to fourth and members to of pressure to turn by actions to need differ discussed and by local three, of factors for

site. accordance should regarding explanation Management's publicly Accounting GAAP in on of filings. light are the and also available releases, Generally our in of any other our address press financial filings that Our that are release, risks update of for Call be risks, in included measures uncertainties in reconciliations undertake non-GAAP SEC therefore SEC our along today's statements results. press or use or the and with Investor measures with forward-looking note no future news not additional and business Today's our these considered discussed to today's Principles obligation these non-GAAP or forward-looking measures or financial all Accepted in includes Relations our We communications are participants filings statements historical to discussion should financial GAAP. release. with

per earnings share to call Bruce diluted turn call to earnings that, the or per over this EPS during refer share. common Finally, conference any made to With references I'll Broussard.

Bruce Broussard

driven commentary in and the share expected, patients, to and Thank serve. per XXXX, quarter programs of joining by earnings employers, support $XX.XX Amy, reported we as investments you, the adjusted with we consistent morning, a loss you us. members, reflecting our and thank in Today, good our for the providers for fourth communities throughout largely year,

partners. assessments, our to burden ease cost of provider wavier in masks impacted financial Medicare fourth for quarter and investments care COVID-XX Our continued by and underserved to members, the for to preventative efforts the Advantage and including primary communities, meals, programs were treatment, delivery our sharing, assist results in-home of tests

scripts, the advance XXXX, growth in the financial business ended primary the to million Louisiana MAPD. XX centers performance, on is continued penetration wholly-owned underlying our including customer-centricity we pandemic, all our by all For to our XXXX, we over accelerate compelling. members', operating was business pandemic, we year. holistic and to continuing of Benefit business, putting year to response the Healthcare invest mail-order full-year, our with Today, associates, fronts XXXX strength and In Defined long-term drove forefront in up I'm pharmacy, objectives, short-term business, XXXX, our our XXX strategy. and Humana in Pharmacy XX% and proud adjusted patients', our largest In year-over-year or care while percentage at worldwide $X our pharmacy our business billion. delivered pharmacy including providers' processed and EBITDA grown the an home these XXX of of opening fourth initiatives, among resilience and and The the drive strategic new after to provider centers performing and efforts. business core Manager our and others, challenging with Service unprecedented in has and health expanding Nevada. in double-digit our PBM. provider, our organically Despite In well. in exceeded the ability our

emergent a Conviva In financial per Heal, in X,XXX. and home, our strategy of turnaround X% minority the we've primary in reduction services investments business care. dispatch in care clinical in-home provider and delivered post-acute a investments important the addition, as continued, in our primary the offer and pioneer clinics of through In in-home care a in improvement significant medical the home made including admissions health, care to primary

operating also demonstrated in setting new CMS up payment in addition, In while to in it room hospital within clinical confidence episodes proactive scaling test-and-learns models meaningful programs in new clinical drive integrated provides managed of and nurses' We will XXXX. to model success these quality successfully XX,XXX The over at beyond. workflow Kindred XXXX, downstream these cost emergency reduces the further advancement Home a home improvement the operating system to admissions. and significantly visits transition implementing new and provide XXXX model, the

our in results fundamental strong insurance business. delivered core also We

our Annual Period revenue $X.X continued long an points are reflecting in growth in fueling or or basis -over-year on for rated across Advantage MA public NPS remain ended XXXX. NPS a the members, traded plans of to increase total platforms very that members announced four XXXX The of net focused AAEP. in in year experience broadly higher We XX% our the all star approximately or XXX positive While have We companies. term, Medicare business. our and XX% our for overall in consumer Election we promoter in Medicare Advantage XX% with meaningfully commercial proud score are year MA of consolidated the growth XXXX higher, with momentum leading group investing increase the million driven

XX we to For growth MA the expecting members XXX,XXX full-year, are to XXX,XXX approximately XX%. individual of or

prior we and programs, allow in meet our our led for broad the growth DSNP, each we the plans that distribution a and the as types in HMO LPPO deeper personalization as provider needs is Importantly continue offerings across MA-only to special or In of membership. MA balanced channels membership plan industry clinical multiple member as a of partnerships, to grow needs. and AAEP years, growth, as robust strength of the result our

members. January, managing also by meet emerging to South Carolina Medicare, of XX,XXX the Author digital aging savvy into Medicare five is with Author approximately launched expectations We in designed in seniors plans to Advantage and experience integrated coaches, Author create more a learnings. and for to plan time by digital simplified over to MA artificial and health scale We look sharing leveraging consumers. intelligence forward our delegating lives Humana

outcomes improved DSNP population We clinical effort growth increasing with how presence DSNP and we year-over-year. Advantage reduced In industry-leading XXXX, Medicare in focus in underserved continue to to membership in we on XX% can drive approximately disparities. our health expand experienced

We year XXXX. growth of expect robust in another membership DSNP

core our care, chassis, clinical is and programs, provider our focused Medicaid on in communities including Our commitment we strengths is relationships on strategy predicated value-based investments to serve. Medicare the of the

believe in that smaller approach Wisconsin. remain as growth considers efficient We members Medicaid beneficiaries firmly growth to capital acquisition being Kentucky the determinants offer announced entry acquisitions. mental the is into organic physical Carolina as that to the Medicare well by XXXX, use program population. well and are the serving shareholders the the our our of well Medicaid further South organic individualized We for tuck-in as committed in iCare We supplemented of and most of began states social in and recently able critical care as impact to

And We organically. to them the these have awarded the pharmacy wins. Oklahoma, efforts a long Medicaid a week, did history the their thank tireless were key we would and on in of congratulate like success businesses just our state previously Medicare Medicaid. team not growing contract I Medicare Advantage in and offer managed for that last managed

combat system crisis pandemic way responded the of I reflect pandemic, I the and am actions taken and how on to collective learnt we critical energized the accelerated from the system. to healthcare tenants what strengthened by the As

providers by months they Advancing and makers, to social enhance determinants that policy sustained CMS, an pandemic, health matter burden took have As years remove with industry care care. easing and most what a to health needed response access time in taken to pandemic we vulnerable and the may plans, nation's the in on to deliberate partnership proactively population the address by most. of the and pivoted some Supported financial exacerbated of a at of our when and in quickly barriers telephonic actions absent pandemic. in-home

at that Biden Medicare enduring and role as vaccination strength Humana's forefront. the the Advantage partnership significant population. as pandemic are and administration and the continues evolve. combined an health both and nation's the Our vulnerable actions puts to including well underscored of most CMS And of the HHS as with holistic engaged our health seniors plan, actively governments process program in we their as response public-private care regarding as representing the a a provider primary portion a local state

become reminders, services, the members ensuring is any on Driven capabilities, assist later the our up and education, more our further identification eligible includes strong our care for and role coordination and such, progresses as by we utilizing follow to concierge distribution As stand more our ready role we eligible nationwide vaccination phases individuals of complications. seconders to multi-faceted. analytics, and And vaccine.

efforts more healthcare enhancing centers that supplemental Medicare particularly in regions those and underserved and local nearly members, with critical in and to Of disparities. governmental innovative continuing other includes is Advantage the support focused to for we ethnic equity is today. engage minorities. beneficiaries for collaborating and and we think as compared ethnic a Data address as the shows and platforms leverage about to intervene to lower disparities This medication aimed communications taking Medicare. and racial dental, by care This engaged build and who over-the-counter as minorities we align addressing that surveillance, that industry XX the also is must industry Medicare to we lagging, growing in continuing members. address at the leadership option committed health markets, help vaccine to social determinants And their well of our needs to Medicare there area low role our educate efforts income vaccine offering Advantage identify the preferred being to to an member's healthcare communities in including members, diversity Vaccine that and underserved traditional in enrollment regionally imbalance role are exists on care populations, is Medicaid. the expand are as access with a racial XX% than benefits working disparities play closely for Advantage as from and and grow Medicare positioned coverage, partners are to these demonstrates recognizing million solutions are uniquely to efforts that across reduce transportation, vision Humana We enhancing with in social our by to can are vaccinations and primary plans use wide insurances, business where of U.S. XX% access. conduct health

while the Dr. coming to a are all and everyone of business to the across With call for named working lines created and background, President system newly promote and better healthcare solution benefit will to equity Brian. our Officer position delivery this recently advance care with or we healthcare the of oriented establish equity economic the will Olayiwola year. Dr. Vice Equity community so that Senior addition, of closing, In healthcare collaboratively we and In meaningfully health strategy in April Nwando that turn including assets Chief age, broader of effective committed results in Humana direction Olayiwola over status. remain work partnerships that, I'll drive to to health years. regardless set public-private

Brian Kane

guidance everyone. year. with and our full Bruce, we year commentary Thanks, share $XX.XX consistent earnings of morning good XXXX Today, reported the throughout adjusted per

the despite underlying pleased premiums increase relative compelling insurance advantage benefits in was our with fee for to including to Despite year, pandemic, to billion not the business, and our health return due very full core Medicare detail, in the our stable for and membership. results a challenges Bruce for remain total faced the We As impacted in were unique revenue described the able delivering the to we or an $X.X increase in and strong deductible XXXX members. consolidated fundamentals XX% also business tax which purposes of our HIF, be maintain competition. disproportionately the XX%

which In like states recent three fourth and our Carolina. guide. our trends, our and to growth to I together our our contract demonstrate important in Oklahoma, addition, congratulations turn concepts quarter XXXX Care These presence our drive in to team results awards our six. Medicaid will to from expand underlying expansion further with organic acquisition our announced Eye I in provide ability for would and initial echo now Bruce's awards Wisconsin for Medicaid South Medicaid to

constituents we filed of and January loss of as in expected, in the investments of share in X, the of $X.XX significant on X-K our the in all increase because made adjusted across testing As treatment a XXXX Further the nation we November pandemic. COVID quarter an experienced costs and of our account per disclosed significant reported December. fourth for

in $X.X For $X.X to arrangements. $XXX COVID in full incurred billion Medicare debt related million which of were year to we treatment XXXX, costs, of providers or capitation billion gross risk

for these the in dramatic the utilization months, non-emergent COVID sought particularly as decline in As care. also we a experienced during increase quarter, non-COVID of fewer in Medicare result people fourth a

were pandemic increase As including reduction baseline segment's having and It was and baseline offset below The a was company prior to success COVID bit in the company's Medicare ongoing group that our is after utilization below to utilization result quarter, in costs testing commercial expectations, yearly non-COVID benefit relief and the unexpected. in the or costs. changes to financial treatment and stress magnitude XX% commercial, note important and baseline quarter, was COVID quarter, above the therefore segment Overall for in the investments particularly non-COVID December specialty strategy. approximately November to levels advance able while efforts in investments those utilization spending intended return in disproportionate decline October. utilization for more providers and for the Medicare business for for the while a of increasing non-COVID in ease relative to these than our to to for relative the ratio. in significantly We levels positioning members the the long-term medical specialty in the group increase

for our customary $XX.XX associated heavily XXXX reflecting cost is costs at election approximately fourth baseline In EPS reflected are now to as growth the were addition, advantage will with investments of XXXX. I our assumptions and related ratio. XXXX, segment, annual as $XX.XX speak the mid-point. of our COVID operating the off marketing quarter XXXX Medicare to along weighted retail we in guidance XX% expectations adjusted period in Today for our providing related to with

there guidance are and our since is consistent previous revenue and natural high have quarter that our with commentary XXXX the between treatment COVID this assumptions that previous Trencin largely tailwinds our with level Trencin in and forces offsetting call, commentary While benefits is utilization. from expense. materially costs third with today's headwinds COVID embedded earnings This changed and guidance countervailing time non-COVID consistent

impacts significantly. investor at call. expense provide call, headwinds incremental third we third high time the At year that revenue that performance. which and of included of stood than tailwinds COVID rather going inclusive to where full expected the about today, full explanations quarter time any level Importantly, various XXXX into the Web to the magnitude and summarizes we we simplify said, have of we our year on in I reflected since have estimates the related a the slide financial will we expected our increased provide, of material discussing guidance changes our to intakes call. an of as the both any Since time, site, Therefore, impact relations puts commentary quarter the effort are conference

provide we a for our would other providing note currently estimates, note transparency granular are that I expected individual to relatively assumptions on are group investors be financial this a the of XXXX that assessment I on as business our outlook. So, latest pandemic variables the provide heightened advantage also level and our pandemic Medicare today is that to comprehensive impact of lines of number by with whereby necessitated a immaterial. the we would for only, unique our net uncertainties is creates of as of numbers the

of important take tailwinds as whole the of adjustment X% business each the note is that are or which Medicare in are provider will Medicare in I of related easier risk And our the approximately it discuss agreements line to figures part the to premium and I MRA to inherent $X picture, to related we net ranges, financial member. our with understand We risk representing or uncertainty for we material now now X.X% it full begin that will on providing for in are XXXX. expected today year. the numbers. $XXX into Medicare MRA. context, facing COVID groups given capitation headwinds million our all revenue reasonably With estimates full headwind item. wide billion for the to investors in Additionally, discussing taking COVID so After finally, make account

by our for membership, calendar reminder, risk Humana's within to established revenue driven through is advantage Medicare XXXX primarily a XXXX documented care the conditions, As providers assumed the year. by

June incurred by based additional XXXX the September, payments the within XXXX and from amounts calendar conditions, year. submitted to CMS over for first reflect Friday claims the the XXXX payment these While be on diagnosis perspective through coming months, we in of will adjusted know codes incurred documented

While compared anticipated is to a estimate revenue submissions higher uncertainty we the projections an normal incremental revenue in progresses, of degree from accrual there a year. as the for year our

Let me spend minutes a of few uncertainty. increased drivers this addressing the

the and drop First, while the providing round November our of in were in clinician and medical tirelessly clinical meaningful access care, and as care non-COVID ability telehealth drive with decline throughout are to therefore document increasing members expected. utilization to video XXXX our they significantly including in-home the and ensure level to members. outreach meaningful to unexpected ability receiving of had to we interactions appropriately access in was availability months out by worked visits, important December not Those our utilization appropriate And appropriate their conditions. affected

which XXXX just organic at that submissions limited our access us year. visibility to Second, the telehealth continued tied for their a normal of number of diagnosis creates Separately around volume COVID the now or conditions. XXXX COVID visits two the dramatic how opportunity place level the claims of to was critical the trends XXXX for on care code able increase These in discuss revenue, different will in XXXX, mix from allowing and our to COVID submissions the as members increase XXXX relative mix time. because Accordingly to to and compared I while very utilization. in to the non-patient example utilization expect affording our Nonetheless from of uncertainty not of examples are were experience of prior years XXXX, greater MRA same reliance uncertainty the to for we this revenue utilization diagnosis inpatient, within drive type emerging document projections diagnosis for and more related creates we year. collected. in historical to throughout XXXX also although codes have we

general inverse between seen and COVID levels a rule, an As we non-COVID relationship treatment costs of have utilization.

seen to ratio led Medicare to As of the given we of persisted baseline running to XX% treatment of we utilization pandemic surges non-inpatient have with COVID utilization the reduction as a date largest utilization. more than by which the we one approximately sought saw the nature being non-inpatient non-essential our for a that To teens is has level in in care the in we weekly largest Medicare sources inpatient that book The the the around low for January. set throughout less these has members, non-COVID significant what they COVID utilization while varied the is pandemic. caveat percentages with depressed and remain admissions have we seeing curve depressed of in that shape more of our two unprecedented two such, costs. the related for the trends non-COVID uncertainty drivers are the non-COVID offset of case receive factors. quarter XXXX, bit inpatient currently, we of And treatment authorization COVID the view below utilization context data a better do much fourth of

the the increased in non-COVID utilization COVID November incurred December treatment costs ramped in reduction ramp be as with up and would XXXX Importantly, quickly that lagging expected. initially

a cases creating then markets. a throughout prolonged of consistent will inverse time. that declined occur impact as rate ramped This likely various and bounce non-COVID the favorable than utilization, decline but back in the gently XXXX what decline, to in steeper we is in expect more such to begin up with when be treatment We of period COVID saw COVID the XXXX for costs

is will experienced expectation and what to through and that This more begin expect the when with million, of Medicare second the million I $XXX we COVID physician schedule result, which minute in a represents now As similar first with costs. approximately increased the testing as claim Medicare to Medicare X.X% to subside get treatment costs discuss normalized of fee is quarters. XXXX to will and that vaccinated X.X% pandemic in a combined consistent people we $XXX the

In relief through million million XXXX fee $XX extension of the $XXX December of Medicare from from $XXX March to headwind for claims impact a to call rates offset partially the to bill, the part stimulus schedule million resulted $XX quarter as sequester third net the net physician million a increase addition, XX. subsequent to the by

be sequester assume year. does extended today the the guidance Our that rest the will for relief of not

currently normal COVID patterns. billion lower pattern to X.X% non-COVID a claims treatment significantly or normalized claim we to normalized inclusive Finally, XXXX, non-COVID reduction reductions costs X.X% a to overall are Medicare X.X%. for reflects of which often billion $X.X annual full-year and to costs, compared in utilization, reduction seasonal flu expect $X approximately reduced This pattern, approximately X.X% of of of of including

first particular, For and full-year surrounding XXXX, in assume the we that non-COVID COVID of and will the of of our are reductions throughout pandemic. With take acknowledged widely that back COVID growth in in would we quarterly approximately than We both Similarly, all-in the that November in non-COVID more by our to a be running was a to XXXX, a levels around guidance and that continue of ascertained revenue XXXX, at levels utilization as utilization impact associated the and XXXX quarter. becomes XXXX. XXXX of trend ongoing to X.X% extent without medical more the utilization which levels to testing experienced patterns, ranges double-digit expect reduction non-COVID X.X% of run providing the final we offset and are reduction utilization utilization and will it COVID impact experience the before the the ramping available months vaccine in towards the respect said, and wide treatment the second persists consequence unanticipated variance COVID end of range baseline treatment resulting costs December CMS, respectively. down in up expenses costs scenarios, within the are several the of decrease months there expectations course we slightly XXXX, assume utilization. first that uncertainty to experienced recognize the year. in and to above continued baseline will least assumptions in our percentage related to levels costs change months, With We few potential into including in any two and depression the quarter heightened this the ranges higher from at from negative net and reflect are

expect healthcare non-COVID Also, utilization of by we from the above prevent time system before, we will modest baseline, running forces. reminder, naturally utilization amount in the capacity above also driven experience splits much quarterly believe said I we and As higher a COVID continue. a and that will given as than portion countervailing deviation constraints of materially increase limit usual, are earnings we Therefore, in but first typically difficult a meaningfully forecasting is do normal the than see. expect from more historical baseline could coming XXXX the a patterns, our we non-COVID quarter EPS in

we one-third below total a less. such, typical contribute just XXX of first annual to the expect XXXX versus quarter basis As quarter, to the points more contribute will first which

split of As be an year, important in quarter aside, the more first while the significantly on the we year. utilization affected equally will patterns throughout most the expect negative impact revenue be to

turn Medicare headwinds the to you relations encourage reference on going site our walked with slide by the waterfall and I've tailwinds, that operating to I Web material, provided to I'm performance expected you Now segment. materials. our investor through the webcast

pandemic, which the adjusted given of off baseline waterfall, we the EPS. grow reset in outlined the must to XXXX As first

starting our guide midpoint the previously, which any COVID point of our initial XXXX discussed for effectively $XX.XX, adjusted throughout EPS impacts for represents neutralizes As is XXXX. and

the balance of a growth a insurance than in long-term health Importantly, for line we industry our year. believe significant impact pandemic, top the we struck between creates the typical both experience investing uncertainty and sustainability, of more while would and fee permanent repeal we contemplating which appropriate the in pricing bottom

declines is PDP to $XX.X individual of by adversely sequester revenue This impacted months growth year-over-year anticipated in partially by versus at MRA previously as by consolidated XXXX. discussed book $XX.X in offset revenue. the of approximately consolidated XX% XXXX driven our well primarily growth guidance membership reflects membership. of expected MA The also X% MA XXXX midpoint Our XX% billion XXXX billion standalone as growth fewer revenues from to the headwind group relief and adjusted

providing Additionally, benefits increasing $X and members in approach benefit of enhanced took earnings EPS. was as previously discussed, while a the we worth our the after to our balanced And and shareholders. to HIF tax approximately our

have the retail growth. industry excited the segment, we incorporated impact balanced we in are have decent In HIF's bars. in leading We our waterfall Medicare particularly our about growth segment the seen

to membership. very to to Medicaid continues we're strategy. business strong continues business. and together. EPS. on Medical, perform to specifically is facing to were relates also execute it can Group our business growth growing incremental pandemic, some about an pressures on show expected Take segment, improvement retain segment well. its Military excited contributing the of the to waterfall respect for major Specialty as prospects And operating are And and retail Specialty opportunities actions With ahead it we The Our about as demonstrated $X.XX The businesses. in for while by the account the our this to we excited competitors our adjusted

the contribute $X.XX of expect approximately segment We XXXX. for to EPS the incremental enterprise adjusted to

well we growth XXXX In expect services, $X.XX services pharmacy healthcare XXXX from adjusted growth our led to business businesses increase driven continue growth XXXX to XX% target we above XX.XX midpoint, we growth of of adjusted termination we For to anticipate in to incremental wholly-owned business, Home, our EPS have expect strong perform summary, core to XX% performance primarily long-term Aetna our growth top our Since our the merger, to our expanding and an of to Mail-Order and Kindred membership our and is XX.X%, Likewise, investors. of continuing increased by the guidance above anticipated continued improve and modestly has as our from is EPS. reflects experienced contribute achieved double-digit adjusted primary long-term XXXX. care of XX% Accordingly, high-teens XXXX, by the year-over-year of percentage momentum, following in advantage XX.XX the compounded while EBITDA In XX% footprint to our the at end center baseline growth EBITDA adjusted home operating Bruce made EPS to healthcare meaningfully at to commitment Medicare Penetration. annual rate XX.XX company the described. XX%. adjusted provider which the

want I on XXXX. close early, very with was it preliminary current thoughts to of our While view some

in vaccine changes normalized normal should to circumstances trend of the take XXXX the the their major and any utilization growing guidance XXXX. we XXXX think our clinical the spring revenue earnings is summer, that pandemic, a about or members and course of document more back are off is midpoint more utilization to we to year. And expectation in XXXX. the be baseline for to in ordinary get Therefore costs barring expectations enabling Our normal hold for significant EPS levels, and which course conditions investors providers to provided non-COVID allowing the today we will resulting see of decline as COVID medical the unforeseen appropriately the expect that adjusted more and into XXXX

the year, as As a of baseline either we consider in impacts we to bids as well will factors we on every dynamics. including any other lingering do our pandemic, external variety of or the relative spring, as approach utilization revenue

lines In to that, please I an you waiting Before to Tuesday, introduce questions. those fairness for the questions, I host Please XXth, to queue, we day up open up one your we'll the yourself in also wanted question. limit plan on date. open the that the investor With the ask line Operator, caller. announce first that for we save to June XXXX.

Operator

Thank you.

the our from America. Fischbeck have from of Bank We question first of line Kevin

open. is go Please line ahead. Your

Kevin Fischbeck

that up baseline, following obviously viewing guess year's on how last June, like your just of guidance happened. point slighter you things submitted as Maybe there's guys you thanks. in about are bids some that been have back guys this changes, that I kind a Great, when

I understanding kind is that So, I has external that of make COVID just the you're legislative and completely what of everything want guess basically saying I changes to I'm that and that sure correctly, all offset like to about else. over period, everything how time. a and it's it a multi-year low -- just with net think "Reprised," guess bit can that be addition feels HIFs relatively $X little a struggling I'm over

Bruce Broussard

morning, good Well, Kevin.

we put me that roll and had we on Let that quarter, today. what and as try we into we would you those utilization our guidance, our able pricing, to And put of were pricing also spending reflected third scenarios revenue amount conditions. the to visit we year, be we certainly significant we our that level contend When view the would a we appropriate or any bids current lot knew our said operators a those see side in gave forward try important early anticipated which of and of bids document we working throughout headwind, there forces, would time be see their to this a the pandemic a just to really provide to time with, the cost face. approached to scenarios the to to ran obviously year we when felt our high the I of spring multiple into being gave the Rolling sort whether get them benefit guidance was remind some forward telehealth, to various and the via and members, context tailwinds we've host also of revenue on countervailing into trying summer was revenue times our headwinds we there definition offsets, had homes, in-person things to how their we would we and any our mitigate could that either obviously by significant at since an assumption headwinds that to by ran we a changed really where have and of of past adjustment. our pricing.

a effort do And lot of able and dollars be really so, took we to a significant to invested that.

utilization even updated to third we obviously high-level November provided and exceeded the And a pandemic quarter, in nationwide. were guidance. relative really higher off for that unexpected really took our lot understood decrease COVID as expectations much utilization hit and and XXXX, we the expectations that where approached and levels so, were as guidance which levels we in or a the was and XXXX those December we hit spring changed, and context, than happened, any was in were expectations significant

perspective. And so, impacted that clearly our

as investors some on seeing important on JP in countervailing we And level were conference potential to January, Morgan commentary what felt out it to we the we provide and high approached our was get so, headwinds and tailwinds.

that. And so, done we've

deliberately we typical where growth above which higher the and -- HIF, our headwinds did, XX% guide just to these we feel range. fall heightened page would is obviously that in our we've seeing something there's matters to watch members these we remarks closely, and has our on granular that Here giving our numbers midpoint at We relative all ranges. the wide variables that's wide an year, achieved continue into I that a to balance that. not between and the said these lot But, these we're can through and obviously we as all lot, provided growth we to aren't coming what's as say ranges in suggest question and And in think on a that update to we But that. to detail dollars XX% obviously lot what XXXX benefits, still on appropriate EPS would there to on reasonable. provided exceeding and investors giving where appropriate, I we're midpoint shareholders to we're see this we're reasonable. going that our But, uncertainty actually a mean of we your variation tailwinds, thought able we a those withstanding numbers. that you ranges. are There's of nothing back to COVID higher on that's

monitoring you expectation is a we I closely no more and XXXX updated, heightened think investors has why doubt XXXX that year. be of the much There's hope So, level balance. and the and going that very on which will that anchored uncertainty think a we're normal we've achieved with keep it right also we've to be

Brian Kane

Kevin, passing on onto the the HIF members, [indiscernible] both during to and a historical our the our just add the little gone side, cost pre-tax come and been the practice benefit has bit year.

consistent benefit always post-tax both XX-XX side we've divided and both to pre-tax typically very tried the done side So, and there. our the be what the benefit this side the tax on fair side, we've on as we've shareholders, and with past members and -- then to bid on season the and was that cost

this of historical think I So, pretty consistent year is the from HIF. what treatment done we've our

Kevin Fischbeck

Thank you.

Operator

next Morgan our have the from Goldwasser line from Stanley. question, Ricky comes We of

open. is Please go line ahead. Your

Ricky Goldwasser

Yes, for the you details. hi, good thank morning, and all

and is XXXX guidance we to XXXX in balance, I truly when XXXX more XXXX? we us Just back of second-half, when the the can assumptions one-time what anchor cadence that that a then you you your range? XXXX, couple what population to headwinds, want are think think but reasonable numbers about secondly, of return to of of Medicare the maybe us we embedded least the off or And they're versus at first-half is nature. we baseline, questions what XXXX, sort point for point, when the between clarification, the for about for COVID-related starting think utilization the for and your normalized of of out think quantify think in help about

Brian Kane

address let guidance. start utilization to patterns me Well, with gave recognizing and Yes. just XXXX then we try XXXX

and not we're the lot in to we most details as depressed certainly patterns, the utilization utilization mentioned costs. first our treatment So, With going we remarks, the of to XXXX to respect a see provide obviously. expect the on quarter COVID highest

utilization one first quarter. sort mentioned, will most in we the expect of as again, offset I so the another, but that depression And those, occur

remain then expect expect as although back-half We than quarter, ramp end much, in it a to normal of above year. the we as the towards utilization more of to normal not we depressed approach the second bit and year the up the and the

comment we're We'll impacts progress and have to point. mindful to when it, tailwinds in very the get So what were broadly with about baseline of we more hard it's spring vaccinations, we is this seeing a like about revenue respect without that, we're that's other really specifics to what's is year. which any with with what specifics our to consistent than of XXXX be say we'll and to give utilization think Again, we're But seeing reasonable XXXX headwinds appropriate think to want of reflect and wouldn't and providing That XXXX beyond how off at that today? we -- COVID decide thinking bids. think in this the you terms I will there. which to beyond to the

Amy Smith

please. Next question

Operator

Research. the Raskin of Josh Nephron comes We line next from from have our question,

ahead. go Please open. is line Your

Josh Raskin

Hi, thanks. morning. Good

Could just be for I guidance then as at an just that new MLR about know apologies, and but MA here, the you -- is us an revenue that you this first-year book first -- MA the and there'll have looking MLRs think it existing a premium and to kind in know really in typically member or correct that like is of sense to members XXXX in isn't benefit. clearing, the we're a new that of guys just affecting that I So, I to past all risk-code, not improvement, for sees then lines bullish at but is spoken higher year. looks typical coming give what inability

couple that You'll been years XXXX. have benefit of you that correctly think as that about the members fair in have Is as of the in a MRA for a coded new with older way XXXX? all cohort get well the to

Brian Kane

Yes. Good Josh. morning,

in So, it, focus past. about I on the on I'd would rather just discussed way the as rather think than focusing what we've MERs, pre-tax

margins getting more document our them tend breakeven, normalized Certainly we're not start year. conditions also members members' a clinical profitability better programs. I the to say think able to get of -- we out in our hasn't bit And it's little [indiscernible] in new we as fair the to and first of that as be but a really year, lot third and that our second the gate, to of changed. to get

we've and we on in it's might seen, fair you certainly a detail I effectively bids. what that think see Without plan for say our XXXX, providing too consistent think that's typically XXXX. in what much with to that's catch-up I

of -- base. revenue which is So, we've seen existing MRA in function membership our a headwind any from XXXX,

plans. had, members particularly were So other new we've the got, members that the we Medicare they not also in that just if it's remember, it's but

to of conditions documented able either. their documentation if they -- our than sort those a have normal same we'd reasons, also were have less competitors of So weren't get would the for they switcher because

as XXXX the you that for will able And the cohorts more clear. we that their in utilization. percent will re-document bid see our sort normal increase so that weren't And as do based sort of plan be frankly, an XXXX was in you on cohorts what of will a something see our other as, to of for in out expect us where well we of of conditions, XXXX. XXXX to we a figure some for Hopefully be -- we

Josh Raskin

thanks. No, Yes, perfect, perfect.

Bruce Broussard

Josh. thanks, Okay,

Operator

We comes of next question, Giacobbe the line from Ralph from have Citi. our

Your line go is open. ahead. Please

Ralph Giacobbe

morning. good Thanks,

wanted go understand the Just core and assumptions back utilization. again, non-COVID the on to or the

minus X.X. I think X.X it slide said the to in minus

Sounded was of XXXX off a like that normalized baseline.

assume make to did for And like wanted be it non-COVID, XX% then it how Thanks. helpful to the down I utilization guess normally to even Just understand sure XXXX? I'd right. or what on sounds And hear the first you that's right? increases that just quarter compares I maybe running is

Brian Kane

Yes.

would So, to I from transparent been going based sort Ralph, XXXX. trends, of But actually these stuff might we not about straightforward, regard. variables XXXX be say inflators would -- you we've mean normalized say the our what when of is did just but to all think assumption so be for we some if that thoughtful if sort our sort really of XXXX various use utilization, just just COVID be we what we by talked we're don't is claims give that about baseline very -- it normalized on impact to on quarter we're the we've you as that can't were normal pricing -- we Really that which utilization what then about. specific relates transparent over and out on would entirely on the that of assumptions, stripped

that's for we why relative to for to of a billed to to, sort and ex-COVID. other for trend relative XXXX trends to that we -- trend of say compare guide I things, to is. give it reduction down And you baseline, ex-COVID baseline a in, sort to things get secular just what the net the you the make X.X% a it ex-COVID say, XXXX easier and And where benders so that X.X% we call other whatever that's today. Medicare, X.X%-X.X% And try

-- uncertainty of world think that that we there the range around trend the would levels those with It's our whole and dealing a wide experience, we reasonable. historical experience. when very than And pandemic, variances, think I have trend this of Again, number you're historical could assumptions we in assumptions. we no that formulate at because XXXX as actuaries, emphasized, So where have have, something we're a we we is potential ensuring a good more just people again, working here asking we very we that hundreds be on we're we in here. smart lot there's again, have of number appropriate bake new trend wrong. is typically about That's

so of our the in And created some challenges forecasting. that's

Ralph Giacobbe

Okay, that's helpful. Thank you.

Operator

comes A.J. Our Credit from next of question line from Rice Suisse. the

go is ahead. line open. Your Please

A.J. Rice

Thanks. Hi, everybody.

down a drill 'XX on outlook. to Just the little bit

come headwind treatment remarks less prepared as as interplay than So, you as COVID you've to And said non-COVID the tailwind treatment disseminated setting for had the widely gets substantially COVID quicker there. but for utilization, the talking than you're and longwinded of vaccine the is the the back, you'd the testing the question. off come COVID stage and about expect utilization testing I think far to so in

flexibility was know happened have guess made this about in within guidance and help quicker And does gets talked 'XX. in or range the that you because throw you that that also this forward the I flexibility have does give your could investments think otherwise you've than -- to within investment if range you range? that So move I'd pulled assumptions just think But ask, if investments XXXX widely lot vaccine around that that constituents. you giving the that year. a a I than much distributed you could give range? would later does you of lot any outside you the or your you How the in

Brian Kane

there's would to because lag system and for back not for Good ramp say as able their are not the really the question, hospital, example, on doctor they're seeing just schedule morning, a going takes the it surgeries, to people A.J. first I for to time the up.

virus To one volumes reasons XXXX of why of insignificant. we it's sort not was It costs that sure sets ranges the a to for extent in here. about, they're time those talking in not that on there's off of the effect that try facts trail out the get and they're reasonable and can delay. that again. had will our that COVID versus the more it And of because change, ranges inverse circumstances we're vaccine are or that we And think of they a just delay. that what sorts gears correlation it's is heard, based tailwinds there's to affect offset will we've the that there just as likely one another. variant the takes the crank circumstances. We cranking natural the just had there's today's treatment rolls and So extent it's again and given conceivable certainly that. we capture But that of effective, some again, slowly the forecast we these impacted; facts To non-COVID

benefit those do, was Commercial our investments, out I tailwind, or quarter, a business our would for lot to all-in. but to we bit to we've we The Medicare we've really XXXX, described, any we mentioned so our all to a we as to lead of Although are and were which running par really, way, to were back any We all the question little mentioned. confine gave Back to those there's Medicare really constituents, that in important as the clear guide. of those not it say, very as in was investments in, below. not your for is business there. not business flexibility clear. fourth there, into baked we -- dollars, XXXX. additional a And in the tends XXXX pulled above But pricing

A.J. Rice

thanks. Okay,

Operator

from Robert Goldman have next of Jones We the line from comes our Sachs. question,

Please Your go line open. is ahead.

Robert Jones

MRA it's to thanks thing but the question. go tricky know just for Great, back tactical of question. get to just a arms the around, maybe to And your headwind. maybe I more a

was just approach relates If I down risk coming -- this the you're because about a coding? that to coding probably differently you thing for least into year? taking to specifically going of getting dynamic of utilization as thinking an the because more challenge 'XX as different risk appropriate it year. again it are given adjustment similar tactically a in year a year in obviously what that non-COVID coming part made are of or speaking, Just doing taking approach curious there's to you're to COVID, into this be fact issue there's at aggressive the maybe you be relates this it guess obviously expecting of risk

Bruce Broussard

that, Yes, Brian, you and take give to break. a I'll little

and forward third throughout challenged believe were first on fourth we where being began the are the quarter and really we aggressive we and -- to ensure the the that in this normal to with in-home in part would documentation do I the re-address Just we're the course of and system. just addition of to become area health that the is fairly I that we all that because trying other availability. utilizing to and aggressive continue the where I our did year, people would continuing provide system, were say carry -- members able at, not areas healthcare using was biggest in year, use And really, assessments, appropriate. would were and

healthcare in that. active, our continue are the utilizing going to or value-based do addition to with office both members We providers, system. that We'll they are and ensure with to physician the very our our outbound engagement with are

would markets the we the healthcare did navigate both, to able opportunity the telehealth fourth COVID If of We gives the to getting and becomes really to really an assessment. have. that I programs people help, isolation have every whether for try a into up say are to our is to in and transportation, more and and and through it's I as really that system us And in-home marketplace focused it stable the are would continue of just we to to more third, was spiking, day And the readjusts an challenge. really ability have team lining think. system But the really social us COVID-related quarter. this what was people the largest issue, them, we'll do itself this it be healthcare to just challenge, national on treating biggest, to we more ability provide to fairly affected

Brian Kane

Thanks, Chris.

Operator

question from comes Our Justin from Research. of Wolfe next the line Lake

Please open. go is line Your ahead.

Justin Lake

Good morning.

basis you for impact an us And numbers, the on Can total XXXX Medicare here of retail gross expect questions X% your Just yields adjustment a of be in and you margins that's was a guidance? Thanks. you've of Can of just Medicare impact Advantage first kind expect overall? be how then on about it couple to given within us big detail meaning a what risk lot XXXX? to where XXXX in looks to basis, margins year-over-year your you Advantage do on on tell Medicare is for your margins you were what here. like yields individual confirm

Brian Kane

Good morning, Justin.

of So showing net mitigation. on side, MRA we're the what the here, effectively is headwind total

make see our Bruce and to the into just really as healthcare did so can to sure members try a we them. lot we get system And described,

of be this face our currently and is But the is headwind transparent. sort want And we efforts. so this we net to mitigation that the very again, of full

yields, are the is and this driver, relief things that As we describe and would But as out, guide there PMPMs, it is would fewer as where typically modestly we'll just say, sort up of flat, to know, the around are sequester pretty help you Justin, goes. of a don't I significant year, lot obviously, PMPM because business one our sequester of that individual there this remember you very relates the is you ultimately know the is of another see other rate way country. rates them, notices disparate to is I a that impact maybe months mix MRA and MA but expectations,

So on where it. that impact can you depending grow,

there a impact of understand So and going. But a host are yields. things question where that it's you're fair

you would didn't I us if question. disappointed ask be margin the Now, about

took you glad opportunity. I'm And fair the it's I a So know question.

the are to is think important retail overall businesses at that segment. inside there it's retail you margin look multiple the when remember I

has First it that was and the off, hits margin by the non-deductible. the fact impacted been

cetera. certainly, a the aftertax we et of So think we geography going the managed about about thought our there. pretax And we lot of on there's as about thought pricing, aftertax, sort but impact

back as to in just form our shareholders. of as As discussed, the some our of we giving we well benefits, members balance to tax benefit higher the both

of that issues discussed make geography not money margin on some at out today, all of of and the margin there're become product. of us. And margin. that lot in impact There has We've it's the if a these on So depress product we've today in to the insurance the the will of margin commodity most premium, talked the also about as hard how the levels come pharmacy is side. much product has more fact, that side, PDP that for

on side. the And so pharmacy we're doing nicely

have we'll also the to as to, you -- MA that that's And geography into think again, And be on both reach to commented but of so order the need in back this there continues MA so that accounts, account. side, penetration in driving also but we Also, impact some you impacts business. takes Bruce in PDP margin the issues individual just and margin, about MA re-bid, too. get when take forth your side, to larger as his our to want there, between a seen and be very, years group so, here, aggressive there's those the that's recover major sometimes shifting few has a mail on competitors accounts to remarks, margins, from levels some margin been continue that very some high when that of transparent they

to is would that of I but sure a And would We're that there say a things guides X.X% we're it below lot for back number. committed overall below say retail are embedded there's reasonably to are to just X% that sort of that looking impacting lot So in X.X% longer-term we you're of that the target. variables that over that X% the get our to target, to I case at.

Amy Smith

you, Thank question. next

Operator

line the next of Bernstein. The comes from Wilkes question Lance from

Your line go is Please open. ahead.

Lance Wilkes

differential particular in are talk as members lines assets? care that and the what a about partner growth in or large can seeing business investments a assets Yes, little provider far and we're for differential as value you interested in Thanks. was based in care of rate owned bit primary

Bruce Broussard

affiliated value that. primary in deeper is Score. MLR, and see continue significantly our also both addition, and to great average greater combined, in We results ones and take industry. star our care to not marketplace that's great showed those The place pursuing see ones. organic, the see our fill care side the capacity on number evolve clinic demand. in the in we've affiliated four superior of challenge performance building see a physicians great half, based relationships with slide I'll us you primary All is aggressively Promoter the clinics scores, Net model, both enough would see clinics, a than the typically and the why to a relationship own the We see in And clinics. what the that just we we as their a to four we below members years we and there's

startup a view startup see invested you of in So from point lot a there. capacity clinics build being of a to

and last for And equal as traditionally XX% the more at I in accelerating XX% traditional to see constraint more our and growth members the in so than in that years for these and growth over see to for for has greater to clinics. us what been you that us. more you'll few growth, is capacity you've and more think becomes our as more opposed seen And growth getting those clinics the available capacity

those the see provider Promoter the from value we we above, and good On star the Good clinic see side. in the really does received, that results clinic continue results to see. see and Net really, we outcomes a side and great scores that clinic we little results than compare outside but the four that, to it scores, are of ones oriented, business less are good of the based not

Lance Wilkes

thanks. Great,

Operator

from of line the Scott from next comes Our question Fidel Stephens.

go Your ahead. line is Please open.

Scott Fidel

that thanks. COVID MA that XXXX ask wanted about to played And one of about on takes big in some out. thinking kicked of already how was changes you're for the ESRD puts maybe obviously, I just and the before Hi, an morning. expansion in. Good coverage update with the

your if to maybe have, on about overlay pandemic impacts you're into thinking And of changed sort if just estimate that we of and pre-pandemic? you So that an you rates interested think can, membership margin expectations actually how have try versus much now that have how the for profile for XXXX. population for overall that the population, first that as ESRD Thanks. you MA you of then then the the about

Brian Kane

numbers think right to members, expectations, said, we call be line in ESRD think to lives any us minus which continues case. puts for it's to XX,XXX, from XX,XXX several in perspective, about to got plus start, we years to XX,XXX so Advantage get a just number of Bruce or we've that we the is that I was would happy around I'm it and or our here, on which can from really Medicare here, with say we going to strategic side penetration, quarters color the the as share ADP, a what the expect of take up but

line getting These them work opportunities these to over them time, as we and to that. add slow I want would their breakeven, think they try I if to and so, And partners continue anything point don't to real and you say it's are any more we're expectations. get less to in losses there're Bruce, profitable to where members. or I think profitability, get We drive as before I not But but having say to ESRD the know with the on meaningful our manage on members, with really opposed right progression. got disease

Bruce Broussard

major is was have going to they've the with off how add, patients. where conversation know And models Payment develop both to XXXX, deep really a with the were we manage really to being my care of relationships to also have the ESRD. coordination to And in side been able those and to a two strategies deal Value I side clinical manage it how and of in able and clinical evolve and to dialysis risk two has confidence just Based that side, us then more I hats really Scott effectively invest the helped around continue for second be provided. to the take innovative then the this of in I'd providers active team this us care, and some to the and the given able ability these cost really is that shares partnerships Model the and the that on thing in we us

said, continue for Brian low business to the no margin As us patients costly or continue forward. and be going will very, be very to margin

years we as a in I great this talking year-ago. penetration this. penetration Brian from shape the MA see said, And were see again, will to So to of also we're do making average began the the we about And overall. think where in be we a

Scott Fidel

as population? pandemic relates And, talk, itself pandemic about I that the given you Bruce, thinking at here this on impact do think recently, just know population it that to the updates has much providers itself? some that some of

Bruce Broussard

are that do of more the us, other it's higher in vulnerable have managing any populations those and or severe for having likelihood population, as conditions, whether we a very populations, vulnerable to those a Typical cases ESRD active condition. in you have chronic

obviously chronic them look And them. COVID was they different and the our at to out and we our members, than talking of other effectively we they're how that costly would I because So But say more and different and reflected conditions. are in results average manage population than their being about reach our they're forecast. Brian the not in where

Scott Fidel

Okay, thanks.

Operator

question Capital next of line the Markets. BMO from Our Matt Borsch from comes

go ahead. open. is line Please Your

Matthew Borsch

on Medicaid, can in you're resumption about assuming thinking ask year. states could the were rate the second-half the about process, given also, last maybe the what how what I you Medicaid are you of address And then of action Maybe you. thank took that? if just on Yes, you assuming, or re-determinations,

Bruce Broussard

I'm to that. Sure, happy take

states on and our we're Florida. just the in to see are rate waiting Kentucky So major side,

we're we and to and expectations budget. rate adjustments, our what expect into our I think Medicaid bake see some we surely waiting might be

impact And guidance the we've is, re-determinations in health pretty then assumption nice got that this increase the to but happens, Effectively, respect the as public membership happen, April, lives year, because there. With a past will emergency range to some if the will you see, expect ends see saw wide waiting that so to to we decline. the Medicaid lose we a cause on re-determinations, membership. we're

course, case the that's say is extended, would I in re-determinations revenue, again, the base guidance to year would will continue, that cause and overall our the guide I think overall health South et will sort and so, the in end that. higher immaterial relatively don't us excludes of from membership the kick our would we our emergency cetera. which a be of or membership at public think excludes enterprise. But this the about of have to extent year. anything Carolina happen, expectation, Oklahoma, And cause that, that which as increase To later And to

Matthew Borsch

you. Thank it. Got

Operator

question Valiquette from comes from of next Our Steven the Barclays. line

open. Please line Your ahead. is go

Steven Valiquette

morning. Good thanks. Great,

really sort cost Bruce, the value evolution not, your at tied any evolving COVID, for or just in that's just payments been And go about providers if control do the 'XX a there is versus side specifically where Has related ability COVID are based of risk, costs 'XX? XXXX, COVID. evolved? for maybe to episodic 'XX think Thanks. 'XX the providers not as to you different talk other for you So that that risk any question to specifically arrangements payment there bundled can that patients, wanted with any on for about versus on provider for medical

Bruce Broussard

we a COVID. of we that for don't really type We have model other payment any bundled And have many question. I good conditions and haven't seen COVID. bundles but not Yes, for mean, physicians uptake lot basis a COVID DRG mind on and in on cost of testing a magnitude here. that incorporated DRG something lesser that. is side, the of a is with lesser, Keep into the

material So kind. at and small fairly that, risk going for I is think

that do really the bit, maintained relationships, to not the as about especially you proactiveness what value-based occur of us, properly broaden time think costs could other traded. if your do is for conditions this we I a think, important question member that little have and see when and in downstream we so is helping

say time proactive your with don't care payment, type bundling in answer to but Oh, very and more we see models COVID especially the So payment question, of vulnerable and value-based this our populations. different do we in relationships much a

Steven Valiquette

got it. Okay,

Thanks. Okay.

Operator

Bank. Our next question Hill George from of from line Deutsche the comes

Your open. ahead. is go Please line

George Hill

and bit, bit a have a would the question, quarter Yes, that XX%. I is things I taking little and it such to to back say to I kind the that to circle heard sure Bruce. just Penetration was comes was it thanks down for wanted make of expectation you Mail assume And I Was for good talk or the hear right you your the for pharmacy and morning guys guess to it's that guys year? returned Mail a more normal level. the strategies used about high you Penetration love quarter. drive a to as for

Bruce Broussard

along as Okay, normal concerned We improvements, is Yes, of of that lockdown pandemic. looked is and I really, we a of therefore became timeframe users to convenience people Mail-Order our users a that. the early of Mail-Order. we really that XX-day about as really have more fact result the see you've stores, the get say, was That the the Mail-Order active did as if drug taking actually for people Mail We service the in as couldn't a of they seen of were great. more in April to result really were were right. more converting and as result seen and and Mail-Order an happening But would year. in the March with it and and part COVID increase saw prescriptions Penetration the the utilizing that's they

we to it are of the educate ongoing benefit pandemic the the as pandemic and the an shutdown the of periods. on just it through continue Mail-Order So some and basis, to opposed helped individuals have seen utilize ability as to

early used as the platforms to side at a as accelerator from consumer-friendly thing active in very look to meet are And that that Mail-Order going of is to when our in on existing of they we the to we for and goal deliveries an can able we first it to that So time expectations say expect then would making of the to our of more second digital have all business. the it way Mail-Order turnaround investment really the that be delivery today the being the book of and the changing I penetration is as us. much customers grow And happen. expectations ensure on

members the You all high ask benefits of that continuing way I been really isn't why our see organization time Mail-Order. the being very you rate we in from remind of as service industry increase And really a that rate our use sort with Specialty and -- on different the that, assisted period throughout demand would a insurance of Mail-Order right by of of from conversation much average say superior the our the to providers, have having has area of effort to appropriate pharmacy to penetration, the side in then continued that us bringing team the really of at able the concentrated the management the to relationships our centers our

George Hill

Thank you.

Operator

Our line Jefferies. Windley comes the Dave next of from question from

Please ahead. line open. Your is go

Dave Windley

extension I you to where and my are just for health taking facilitator Thanks the wondering looking it's How the effort telehealth, a couple morning. has primary How to during call. care telehealth? and mentioned whether know you've and good forth I'm that times aggressively a you're you it at wanted putting about there, of you home Hi, yes, reimbursing are incentivizing ask its as Bruce, incentivizing it question. it using use? how Humana are

Bruce Broussard

all a We're transportation telehealth the big the limiter way them? that how sides. member the for have being is members it we question about in of on to them. convenience actively the time is to always believers really that incentivize to Answer channel vulnerable really doing from -- engaging do your two a the with We're especially for of more member able

versus and carry think, telehealth is visit. barriers the pay thing equal second providers the of use providing a as copay those done the and using forward. also reducing did evolve of and have over to that you use really that external telehealth. they telehealth. them year That's providers we've I incentives continue we some creating to have we on is acquainted with a telehealth technology going telehealth around on, our very really to First carried strategies zero a this have said Both visit to don't that been, that for providers then, if to We utilize few really -- mean small our helping offer different I able it. they become them it. and would to And one telehealth some as need being a

that area to able a at Our work area that with they specialists in especially providers system, where local sophisticated on third short the an to supply very outreach we platform internal hospital side. continuing we certain -- can telehealth can the outreach offer specialty convenience we at in that in in and be then telehealth our is have And the them where look being offer markets marketplace. the might own

providers, systems but members, remote see we the do mean to help especially hospital see we more offer help do So in specialty I partnering with importantly as that areas.

Dave Windley

real I that as parody? a reimbursement in Medicare? commercial Is as that is clarify Can quickly, book your well

Bruce Broussard

but different specifics I I different. Amy, general. providing, in divisions. want we we're giving are by in providing we're into don't if don't get general wouldn't just the the the too. that. to would I know we're I say know different think payment I

Dave Windley

Okay. you. Thank

Bruce Broussard

reimbursement. we also but office -- section is the it's I more can reduced details. get to if can not, think -- If you that it's gets the a office the in rate, is but doing follow-up, all it we're of the then full we

Dave Windley

Thank Yes, you. that's great.

Bruce Broussard

Welcome.

Operator

from of Our next question J.P. Morgan. comes Taylor Gary from line the

ahead. Your line is go Please open.

Gary Taylor

for lot about just color. it jumping Thanks of move big you a maybe all point. you XXXX has the a for the a just normalizing XXXX want morning. go back good had Brian second. picture using I to off talked MRA COVID-related the headwinds just as Hi, into

shouldn't growth, XXXX there long-term from historic about also an we've to So above be increase. given, that reason rate thinking XXXX? in XX' rate known that final notice when XX% about got think we and early Is the distance any XX% this we

Brian Kane

is don't Well, always deliver and times our that's take have is XX% XX% level, And it's below, be for to the want and goal goal long-term we have growth I when guidance when a we XXXX. hit call certainly growth. again, been on to And XX%. really been there facts highest our above, to that rate time price. certainly to I giving say the at to this sometimes a the but we've to we're circumstances would XX%

So hopefully that [multiple -- speakers]…

Gary Taylor

I just understood. know appreciate off it's about are distance, thinking we Right, comment. from the this I at a Thanks. but way where

Brian Kane

Welcome.

Operator

Our comes Cowen. next the question Rhyee line from from Charles of

open. Your ahead. go line Please is

Charles Rhyee

for Thanks wanted I the taking just question. about telehealth. follow-up Yes. to

with I think in creates the prepared uncertainty around comments, you some spoke documentation coding. using about telehealth how

previous trying to It to used later there get or telehealth and fundamental back to a telehealth number think just kind then providers incentivize the Bruce understand being like an how accurately is you're the question how about issue sounds you've on you Is healthcare on their is issue problem telehealth into about when talked to of your is one of itself. people it. itself an people know today? the is I I with all integration is status system is that to health a set code disconnect this this up use issue is sort way trying deployed? actual that that talked or

Bruce Broussard

telehealth, if can video member you and find It's use audio we documentation. really on support more side, first what today the the

So last place that of regulatorily came possible the and part into is latter year.

someone they what So that able The when is uses it is we see it once use a be more to problem frequently. is to then documentation. there's, way bring telehealth,

are of say I see contained, telehealth, are use membership. significant it all are should members we it's more the And our And but that so, across a more using refined. not

serve increase integrated. base. the the to a in technology just confined increase Either opposed And with membership be have but be a where technology, not of access. comes that the of be over with everyone one comfortable more membership base telehealth, shows some across really telehealth work needs the be the will it be in of barriers ability the to base, as might see working we're opposed base it that result that's telehealth to has membership we a as significant in more broad to So could as see in communities we limitations our or is And today. to that of had they to but lot might not that educated membership a our for narrow a there needs used we is telehealth

Charles Rhyee

if I does -- it documentation whether Is you're -- the persist that guys earlier the you're speakers]… that is about follow-up, you're going uncertain getting at usage the that into itself, mean just telehealth that that talked XXXX. Yes, was [multiple that you coding to when of level, could of then going kind

Bruce Broussard

Brian me can this, you to let an example. the the really give add telehealth but is

have are telehealth. using We today that members

receiving they're are would telehealth our improve member to. using it's could whatever for with receive therefore members. from next those love be visit. being documentation a comfortable telehealth, to not isn't as We going We not to better. visit see on the but documentation any reasons able And telehealth attributed another -- The I that, to that documented been

our So is a in base. our narrow more penetration membership

working the itself that, hard it's really narrowing educate membership try the about. that's people talking require barriers documentation. that to it how It's to whether because are smaller penetrating for technology that access but only we're We a membership to there's is to telehealth. we that on a broaden or what to ability use lot the of And are barrier, the

Charles Rhyee

thank you. Great,

Bruce Broussard

Welcome.

Operator

turn I no And we questions the Bruce Broussard. back have go this ahead. to now Sir, will call please time. at

Bruce Broussard

thank pandemic the your and XXXX. Again, for everyone. to and thanks this we through especially support complexity of time Well, and in you through continue

our XXXX, results see our from organization behalf been XX,XXX quite really it's at is as the think view and thank you and levels our As these all we can dedicated a on in to to performance consumer well employees there, all strategically point you our from performing I of of financial constituencies. great have delivering that

I everyone and is So have safe thank a you day. and great again, hope

Operator

does Have that today. day. our conference you a conclude participating now great and for Thank disconnect. gentlemen and Ladies may all for you

Humana (HUM) 3 Feb 212020 Q4 Earnings call transcript